Americans Are Fleeing Big Cities: Here’s Why, According to Bank of America

The phenomenon known as The Great Migration of Americans from Big cities run by Democratslike New York and San Franciscocontinues to grow, according to a report by an analyst from Bank of America Based on anonymous, aggregated internal data.

The analysis reveals that during the second quarter of 2024, there was a significant decline in population in many cities in the northeast and west of the country. USAAs stated. Fox Business, New York, Boston, San Francisco, Los Angeles, Seattle and PortlandOregon was the hardest hit state.

In the northeast, New York and Boston It experienced the largest net population outflows, while in the West, San Francisco, Los Angeles, Seattle and Portland led the fall High Tax Burdens in New York and Californiawhich is among the highest rates in the country, along with an increase in property crimes in San Franciscowere decisive factors in this displacement.

According to data from Center for Criminal Justice Statistics The follower California Department of JusticeThe increase in property crimes has exacerbated the sense of insecurity in the area. San Francisco.

Detailed analysis of Bank of Americacollected by Fox Businessprovides a vision of the cities that have witnessed Significant increase in populationOf the country’s 23 major urban areas, Columbus, Ohio It recorded the highest net flow of people during the second quarter of 2024, followed by Austin, Texas, Vegas, Saint Anthony and Jacksonville, Florida.

It is worth highlighting that Texas, Florida and snowfall It does not impose a state income tax, which is an additional attraction for immigrants seeking better economic stability.

The report also highlights that while there has been a trend of migration towards certain cities, the overall number of households moving between cities has declined. This may be due to the increased hidden costs of home ownership, such as homeowners insurance and property taxes. These “hidden” costs have increased significantly in recent years, especially in the global Sun Belt.

document Bank of America He also highlighted that Generation Z and Low-Income Families They were most likely to move in the second quarter, perhaps out of financial necessity rather than personal choice.

“In our view, the current level of intercity movement is hampered by the ‘hidden’ costs of home ownership, alongside more obvious costs such as high mortgage rates,” the report said. It added that “ Generation Z Low-income people, especially renters, continue to move.”

The reasons for this migration appear to be closely linked to affordability and the cost of living.The report notes that it is easier for young people and low-income families to change their mind because a larger percentage of these consumers are renters than homeowners. The homeownership rate is just 35 percent among Americans ages 25 to 30, compared with 66 percent for all ages.

The phenomenon of migration from major cities to areas with more attractive tax jurisdictions and lower costs of living is not new, but The economic impact of the COVID-19 pandemic appears to have exacerbated this trend..

analyst Bank of America It concludes by noting that the migration trend is likely to continue, driven by economic factors and perceptions of quality of life. The report highlights the urgent need for policies that address housing affordability and financial issues to stop the flight of residents from some major U.S. cities.